Republic's pre-tax income for the second quarter of 2015 was $9.1
million, compared to $33.3 million for the prior year's second quarter.
Republic's net income for the second quarter of 2015 was $4.3 million,
or $0.08 per diluted share compared to prior year net income of $20.1
million or $0.38 per diluted share. The effective tax rate of 52.7% for
the quarter was higher than the normalized tax rate, primarily due to
the impact of miscellaneous non-deductible expenses.

The second quarter 2015 financial results were negatively impacted by a
significant reduction in operational reliability. The Company's
controllable completion factor and operating revenues were significantly
lower than expected due to a high number of pilot related cancellations
as a result of the growing national pilot labor shortage and our
on-going labor dispute with International Brotherhood of Teamsters (IBT).

The second quarter results were also negatively impacted by fleet
transition costs and idled aircraft costs totaling $10.8 million
associated with our removal of E190 and Q400 aircraft and surplus E145
aircraft.

The Company reported the following key metrics for the three and six
months ended June 30, 2015, and 2014:

Three Months ended June 30,

Six Months ended June 30

%

%

Increase /

Increase /

(Unaudited)

2015

2014

Decrease

2015

2014

Decrease

(in millions, except as noted with *)

Available seat miles (ASMs)

3,628

3,715

(2.3

)%

7,118

7,081

0.5

%

Block hours (hours)

182,357

191,748

(4.9

)%

359,925

377,361

(4.6

)%

Departures*

103,761

106,499

(2.6

)%

200,388

209,848

(4.5

)%

Operating revenues

$

337.6

$

343.0

(1.6

)%

$

678.6

$

680.5

(0.3

)%

Pre-tax income

$

9.1

$

33.3

(72.7

)%

$

20.3

$

56.1

(63.8

)%

Pre-tax Margin*

2.7

%

9.7

%

-7.0 pts

3.0

%

8.2

%

-5.2 pts

Diluted earnings per share*

$

0.08

$

0.38

(78.9

)%

$

0.21

$

0.65

(67.7

)%

EBITDA

$

85.9

$

105.3

(18.4

)%

$

173.1

$

199.2

(13.1

)%

EBITDA margin*

25.4

%

30.7

%

-5.3 pts

25.5

%

29.3

%

-3.8 pts

Operating Revenue HighlightsOperating revenues decreased
$5.4 million, or 1.6%, during the second quarter of 2015 to $337.6
million. Fixed-fee service revenue decreased $4.5 million, or 1.3%, to
$332.6 million primarily due to a decrease in block hours flown and
reduced revenues related to reimbursed aircraft ownership costs
associated with aircraft temporarily removed from revenue service during
the second quarter.

Operating Expense HighlightsWages and benefits expenses
increased 3.6%, or $3.3 million, primarily due to an increase in pilot
wages. The cost per block hour for pilot salaries increased by more than
15%, due to seniority related contract wage increases and pilot premium
pay incentive programs such as vacation buy-back and pilot open-time
pickup.

Depreciation and amortization expense increased 10.7%, or $4.5 million,
due primarily to the increase in the number of owned E175 aircraft.

Other expenses increased 31.0%, or $11.3 million, primarily due to an
increase in fleet transition costs primarily related to the removal of
Q400 and E190 aircraft coupled with costs for increased professional
fees.

Balance Sheet and Liquidity HighlightsThe Company's
unrestricted cash balance decreased $32.3 million, to $191.6 million,
from December 31, 2014, due mainly to scheduled principal repayments. A
consolidated balance sheet and a condensed statement of cash flows have
been included in the tables section of this release.

The Company's debt decreased to $2.25 billion as of June 30, 2015,
compared to $2.34 billion at December 31, 2014, primarily related to the
Company's scheduled principal repayments.

Recent Business DevelopmentsOn July 9, 2015, the IBT,
representing Republic’s pilots, filed suit against the Company alleging
that the Company unilaterally increased compensation for pilots and new
hires in violation of the Railway Labor Act. We believe the suit is
without merit, and the Company has filed a motion to dismiss. The motion
is currently pending.

On July 24, 2015, the Company announced the engagement of Seabury Group
as its advisor to restructure the Company's operational and financial
commitments and explore all options to maintain the Company's enterprise
value. The Company has initiated discussions with its CPA partners to
further reduce flying schedules during the second half of 2015 and 2016.
In light of the anticipated fleet reductions, the Company rescinded all
previously issued financial and operational guidance on July 24, 2015.

On August 5, 2015, the Company announced that Tim Dooley resigned as
Executive Vice President, Chief Financial Officer and appointed Joe
Allman to Senior Vice President, Chief Financial Officer. Jason Secore
assumed Mr. Allman's prior role as Vice President Finance and Treasurer.

On August 6, 2015, the Company received notice from the National
Mediation Board scheduling the next mediated session on August 20, 2015,
with the IBT National Airline Division, IBT Local 357, and the Company.

Today, the Company is announcing Paul Kinstedt as acting Chief Operating
Officer. Paul joined the Company in January 2002 as Director of Systems
Operations Control. He was promoted to Vice President of System
Operations Control in September 2006 and served in that capacity until
January 2013, when he was named Vice President of Flight Operations. He
has a Bachelor of Science degree in Aviation Science from Parks College
of Saint Louis University in St. Louis Missouri and his Masters of
Business Administration from Illinois Benedictine College.

Corporate InformationRepublic Airways Holdings Inc., based
in Indianapolis, Indiana, is an airline holding company that owns
Republic Airlines and Shuttle America, collectively “the airlines.” As
of June 30, 2015, the airlines operate a combined fleet of about 240
aircraft and offer scheduled passenger service on about 1,250 flights
daily to about 100 cities in the U.S. and Canada through fixed-fee
flights operated under our major airline partner brands, including
American Eagle, Delta Connection, United Express, and US Airways
Express. The Company currently employs about 6,500 aviation
professionals. For more information about Republic Airways, please visit
our website at www.rjet.com.

The Company will conduct a telephone briefing to discuss its second
quarter 2015 results at 11 a.m. (Eastern time) Friday, August 7, 2015.
This call is being webcast by Thomson/Reuters and can be accessed at the
Republic Airways Holdings' website, www.rjet.com.
Those wishing to participate can do so by calling (866) 318-8614.
International callers can participate by calling +1 (617) 399-5133; the
passcode is 59165818.

To listen to a telephone replay of the webcast, call (888) 286-8010 and
use password 39042126. International telephone replay will be available
by calling +1 (617) 801-6888 and using the same password. The replay
will be available from 3 p.m. (Eastern time)August 7, 2015, to 11:59
p.m. (Eastern time)August 14, 2015.

Additional InformationIn
addition to historical information, this release contains
forward-looking statements. Republic Airways Holdings Inc. may, from
time to time, make written or oral forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements encompass the Company's beliefs, expectations, hopes or
intentions regarding future events. Words such as “expects,” “intends,”
“believes,” “anticipates,” “may,” “will,” “should,” “plan,” “estimate,”
“predict,” “potential,” “continue,” or “likely” and similar expressions
as well as the negative of such expressions are used to identify
forward-looking statements. All forward-looking statements included in
this release are made as of the date hereof and are based on information
available to the Company as of such date. The Company assumes no
obligation to update any forward-looking statement. Actual results may
vary, and could differ materially, from those anticipated, estimated,
projected or expected in these forward-looking statements for a number
of reasons, including, among others, the risk factors disclosed in the
Company's most recent filing with the Securities and Exchange Commission.

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

(In millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

% Increase /

% Increase /

2015

2014

(Decrease)

2015

2014

(Decrease)

OPERATING REVENUES:

Fixed-fee service

$

332.6

$

337.1

(1.3

)%

$

668.1

$

665.5

0.4

%

Other

5.0

5.9

(15.3

)%

10.5

15.0

(30.0

)%

Total operating revenues

337.6

343.0

(1.6

)%

678.6

680.5

(0.3

)%

OPERATING EXPENSES:

Wages and benefits

95.1

91.8

3.6

%

189.2

181.0

4.5

%

Aircraft fuel

3.9

5.6

(30.4

)%

7.6

12.9

(41.1

)%

Landing fees and airport rents

6.2

6.6

(6.1

)%

12.1

13.8

(12.3

)%

Aircraft and engine rent

31.1

31.3

(0.6

)%

62.3

62.4

(0.2

)%

Maintenance and repair

64.1

61.7

3.9

%

131.3

126.0

4.2

%

Insurance and taxes

4.9

4.4

11.4

%

9.8

10.9

(10.1

)%

Depreciation and amortization

46.7

42.2

10.7

%

92.7

83.5

11.0

%

Impairment and other charges

—

—

—

%

—

19.9

(100.0

)%

Other

47.7

36.4

31.0

%

94.5

72.9

29.6

%

Total operating expenses

299.7

280.0

7.0

%

599.5

583.3

2.8

%

OPERATING INCOME

37.9

63.0

(39.8

)%

79.1

97.2

(18.6

)%

OTHER INCOME (EXPENSE):

Interest expense

(30.1

)

(29.8

)

1.0

%

(60.1

)

(59.6

)

0.8

%

Fair value gain - restructuring asset

—

—

—

%

—

18.4

(100.0

)%

Other, net

1.3

0.1

1,200.0

%

1.3

0.1

1,200.0

%

Total other expense

(28.8

)

(29.7

)

(3.0

)%

(58.8

)

(41.1

)

43.1

%

INCOME BEFORE INCOME TAXES

9.1

33.3

(72.7

)%

20.3

56.1

(63.8

)%

INCOME TAX EXPENSE

4.8

13.2

(63.6

)%

9.6

22.0

(56.4

)%

NET INCOME

4.3

20.1

(78.6

)%

10.7

34.1

(68.6

)%

NET INCOME PER COMMON SHARE - BASIC

$

0.08

$

0.40

(80.0

)%

0.21

0.69

(69.6

)%

NET INCOME PER COMMON SHARE - DILUTED

$

0.08

$

0.38

(78.9

)%

0.21

0.65

(67.7

)%

Weighted average common shares:

Basic

50.9

49.8

2.2

%

50.5

49.7

1.6

%

Diluted

51.0

52.9

(3.6

)%

50.8

52.9

(4.0

)%

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions, except share and per share amounts)

June 30,

December 31,

2015

2014

ASSETS

Current Assets:

Cash and cash equivalents

$

191.6

$

223.9

Restricted cash

20.1

21.7

Receivables - net of allowance for doubtful accounts of $2.4 and
$2.6, respectively

Revenue passenger miles are the number of scheduled miles flown by
revenue passengers.

Available seat miles are the number of seats available for passengers
multiplied by the number of scheduled miles those seats are flown.

Passenger load factor is revenue passenger miles divided by available
seat miles.

Hours from takeoff to landing, including taxi time.

Average number of hours per day that an aircraft flown in revenue
service is operated (from gate departure to gate arrival).

Excludes 11 owned E140 aircraft that were abandoned and four leased
E140 aircraft that were permanently parked, seven owned and nine
leased E145 aircraft that were temporarily parked, and one owned E135
aircraft and eight owned E145 aircraft that are leased to other
operators, as of June 30, 2015. Excludes 11 owned E140 aircraft that
were abandoned, 11 leased E145 aircraft and two owned E145 aircraft
that were temporarily parked as of June 30, 2014.

Excludes five leased Q400 aircraft, of which; three were temporarily
parked and two that were transitioned to Flybe and three owned E170
aircraft that are leased to other operators, as of June 30, 2015.
Excludes two temporarily parked E190 aircraft as of June 30, 2014.

Revenue passenger miles are the number of scheduled miles flown by
revenue passengers.

Available seat miles are the number of seats available for passengers
multiplied by the number of scheduled miles those seats are flown.

Passenger load factor is revenue passenger miles divided by available
seat miles.

Hours from takeoff to landing, including taxi time.

Average number of hours per day that an aircraft flown in revenue
service is operated (from gate departure to gate arrival).

Excludes 11 owned E140 aircraft that were abandoned and four leased
E140 aircraft that were permanently parked, seven owned and nine
leased E145 aircraft that were temporarily parked, and one owned E135
aircraft and eight owned E145 aircraft that are leased to other
operators, as of June 30, 2015. Excludes 11 owned E140 aircraft that
were abandoned, 11 leased E145 aircraft and two owned E145 aircraft
that were temporarily parked as of June 30, 2014.

Excludes five leased Q400 aircraft, of which; three were temporarily
parked and two that were transitioned to Flybe and three owned E170
aircraft that are leased to other operators, as of June 30, 2015.
Excludes two temporarily parked E190 aircraft as of June 30, 2014.

Costs (in 2014) includes total operating, interest and impairment
expenses offset by fair value gain. Total operating and interest
expenses, including impairment and fair value gain is not a
calculation based on accounting principles generally accepted in the
United States of America and should not be considered as an
alternative to total operating expenses. Costs per available seat mile
utilizing this measurement is included as it is a measurement
recognized by the investing public relative to the airline industry.

The Company is providing disclosure of the reconciliation of reported
non-GAAP financial measures to its comparable GAAP basis financial
measures. The Company believes that the non-GAAP financial measures
provide investors meaningful measurements of the Company's financial
performance.

"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this press release regarding Republic
Airways Holdings's business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of such
risks and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see the summary of risk factors contained
in our earnings release.